Business and Entrepreneurial Review Vol.18, No.

2, October 2018
E-ISSN: 2252-4614 Page 165 - 176

The Effect Of Transformational Leadership Style,

Work Motivation, And Work Environment On
Employee Performance That In Mediation By Job
Satisfaction Variables In Pt. Gynura Consulindo

1)Muhammad Tafrizi Priarso

2)Prastiyo Diatmono
3)Siti Mariam
1)Masters in Management Program, Post Graduate Studies, Trisakti University
2)Masters in Management Program, Post Graduate Studies, Trisakti University
3)Jakarta Institute of Social Sciences and Management STIAMI

E-mail: [email protected]

ABSTRACT

The objective of this research was to determine the factors that influence job satisfaction
and its consequences toward employee performance at PT. Gynura Consulindo.
Independent variables in this research are transformational leadership style, work
motivation and work environment. The intervening variable in this research is job
satisfaction and the dependent variable is employee performance. The methodology of this
research was descriptive causality designed by testing hypotheses. Data collection uses
primary data by distributing questionnaires to employees of PT. Gynura Consulindo. The
sample used in this study was 114 respondents from a population of 160 people based on
Slovin's calculations. The results of the study showed that the factors of job satisfaction on
employee of PT .Gynura consulindo are transformational leadership style, work motivation,
and work environmental. Furthermore, job satisfaction has significant impact towards
employee performance. It means that, job satisfaction has very dominant role as mediator
in employee performance achievement.

Keyword: Transformational leadership style; work motivation; work environmental;

job satisfaction; and employee performance.
166 Business and Entrepreneurial Review Vol.18, No.2, October 2018

INTRODUCTION

Regarding employee performance is an important asset of a company (Mariam, 2016;

Mariam & Ramli, 2017). Especially for companies that focus their business units in the
service sector (Ramli & Sjahruddin, 2015, Ramli, 2016a). Dependence of companies
engaged in this service is very high for employees who work for the company (Ramli,
2017a; Puteri & Ramli, 2017, Ramli, 2012b, Ramli, 2016b). Thus, good employee
performance is needed for the company (Ramli, 2010; Ramli, 2012a). One of the
companies engaged in service providers is PT. Gynura Consulindo. The company is
engaged in Landscape Maintenance, Design and Build which focuses their core business
on garden maintenance.
Since it was founded in 2009, PT. Gynura Consulindo has cooperated several times with
the private sector and the government in terms of garden maintenance. Several factors
that can affect employee performance based on previous research include; (1) Chandra
& Priyono (2016) in their research concluded that Leadership Style, Work Environment.
and Job Satisfaction has a significant effect on Employee Performance; (2) Johnson &
Nandy (2015) states that Leadership Skills, Job Satisfaction and Motivation have a
positive influence on Employee Performance, Future Financial Performance and
Customer Outcomes; (3) Research conducted by Pawirosumarto, Bachelor & Gunawan
(2016) states that Leadership Style provides a positive and important influence on
Employee Performance. Leadership Style, Organizational Culture and Work Environment
have a positive and important influence on Job Satisfaction. Thus, Organizational Culture,
Work Environment and Job Satisfaction have a positive effect on Employee Performance;
(4) In Prabowo's research, Noermijati & Irawanto (2018) concluded that the
Transformational Leadership Style did not have a significant influence on Employee
Performance. Motivation provides a significant influence on Employee Performance and
Job Satisfaction. Job Satisfaction provides a significant influence in the mediation between
Transformational Leadership Style and Employee Performance (Ramli, 2017b; Ramli &
Yudhistira, 2018).
This explains that the Transformational Leadership Style can have an effect on Employee
Performance if supported by Job Satisfaction of Employees (Ramli & Maniagasi, 2018).
Job Satisfaction provides a significant influence in the mediation between Work
Motivation and Employee Performance. This explains that Work Motivation can have an
Business and Entrepreneurial Review M.Tafrizi, Prastiyo, dan Siti 167

effect on Employee Performance if supported by Job Satisfaction of Employees (Ramli,

2018).
Based on some of the explanations above, the authors are interested in conducting
research conducted in different companies and with different business backgrounds in
terms of examining the positive influence of the Transformational Leadership Style, Job
Satisfaction, Motivation, and Work Environment on Employee Performance in PT
employees. Gynura Consulindo in Kudus, Central Java.

LITERATURE REVIEW

Transformational Leadership Style

According to Prabowo, Noermijati & Irawanto, (2017) Transformational Leadership Style
is a type of leadership that is able to integrate creative insights, perseverance, energy,
intuition, and sensitivity to employees to get the goals or desires of the organization and
have an extraordinary impact on employees. According to Yukl, (2010) mentions four
characteristics possessed by a leader who are transformational, including: 1). Idealistic
influences are behaviors that produce employee admiration, respect and trust in their
leaders.

Work Motivation
According to Prabowo, Noermijati & Irawanto, (2017) Work Motivation can be
interpreted as a strength possessed by someone who can increase their potential in
carrying out an activity. Work Motivation can be sourced from within the individual itself
or from outside the individual. There are several factors that can affect Work Motivation,
namely initiative, promotion, type of work, opportunities to learn and grow, appropriate
bonuses, company policies, relationships with colleagues, job security, personal life,
working conditions, and status. Work Motivation also has an influence in increasing
Employee Performance followed by Job Satisfaction from felt by employees. Work
Motivation according to Mangkunegara & Octorend, (2015) is a condition that
encourages employees to work according to their own direction or initiative in
accordance with company goals. A good work environment also affects the employee's
mentality to strengthen his motivation. So that it can achieve maximum performance.
168 Business and Entrepreneurial Review Vol.18, No.2, October 2018

Work Environment
According to Chandra & Priyono, (2016) Work Environment is everything that is around
employees and can influence employees in carrying out their duties and work every day.
Besides that the work environment is one that is around workers or all who want
someone who can influence the work itself in implementing the tasks that are charged.
Many factors affect Employee Performance in a job in a Work Environment. To implement
work effectively and efficiently requires a Work Environment that is able to support the
things that are implemented to function properly. In the research of Pawirosumarto,
Bachelor, and Gunawan, (2017) the physical form of the Work Environment is space,
physical layout, noise, tools, materials and work colleague relationships. The quality of all
aspects is important and must have a positive effect on the quality of work performance,
Tyssen, (2005). A Work Environment is a place where employees carry out their
activities, where it can bring positive and negative effects for employees to achieve their
results.

Job Satisfaction
Andreani & Petrik, (2016) argues that when leaders can understand the differences in
each employee and can reward employees appropriately in doing their work, they will
feel satisfied because they are valued individually. Every employee has a different level
of satisfaction. Job Satisfaction refers to multidimensional psychological responses to the
work of every individual. Job Satisfaction also refers to positive feelings that employees
can get because their work has important value and is very meaningful to them. So it can
be said that job satisfaction is the result of individual interaction with the work
environment.

Employee Performance
In Andreani & Petrik's research, (2016), explains that Employee Performance is an
outcome that an employee wants to achieve in carrying out the work given to him based
on the skills and experience he has. In addition, Employee Performance is the result of
qualitative and quantitative work carried out by an employee in completing his work in
accordance with the responsibilities given to him. This refers to how employees try to do
and complete the work that is given well.
Business and Entrepreneurial Review M.Tafrizi, Prastiyo, dan Siti 169

Hypothesis Development
Naeem & Khanzada (2018) in their research explained that leadership style has an
important role and impact on employee job satisfaction. In this research explains that
different leadership styles also influence job satisfaction and employee working
conditions. Transformational Leadership Style can fundamentally increase job
satisfaction, create a sense of responsibility, and inspire intellectually. Generally, leaders
with this Transformational Leadership Style are able to inspire their employees to
become more independent and responsible, the results of which can increase employee
performance and increase job satisfaction. Based on the opinions discussed above, the
following hypothesis is made:
H1: There is a significant influence between Transformational Leadership Style on Job
Satisfaction.

According to Mangkunegara & Octorend, (2015) Work Motivation can also be concluded
as a matter that can provide an atmosphere in one's work that creates excitement that
they have the feeling to work together, work effectively, and integrate with all available
resources to achieve job satisfaction . Based on the opinions discussed above, the
following hypothesis is made:
H2: There is a significant influence between Work Motivation on Job Satisfaction.

Chandra & Priyono, (2015) Work Environment is everything that is around employees
and can influence employees in carrying out their duties and work every day. Work
Environment which has a conducive and comfortable atmosphere makes all employees
can communicate well between themselves and can work together. Situations like this
make employees feel satisfied with what they do. In addition, with a comfortable work
environment, employees will feel satisfied with the work they do (Andreani & Petrik,
2016). Based on the opinions discussed above, the following hypothesis is made:
H3: There is a significant influence between Work Environment on Job Satisfaction.

According to research conducted by Naeem & Khanzada (2018) job satisfaction can
improve employee performance. When employees feel satisfied with their work, their
interest in completing assignments also increases. When employees are satisfied with
their work, the possibility of doing things better and decision making in solving a problem
170 Business and Entrepreneurial Review Vol.18, No.2, October 2018

also becomes better and more effective (Rezvani et al.). employees with low job
satisfaction will have low performance too. Because, employees who are not satisfied
with their work are not enthusiastic about doing their jobs. Based on the opinions
discussed above, the following hypothesis is made:
H4: There is a significant influence between Job Satisfaction on Employee Performance.

In Prabowo's research, Noermijati & Irawanto (2017) concluded that Transformational

Leadership Style can affect Employee Performance if it is based on Job Satisfaction. Based
on the opinions discussed above, the following hypothesis is made:
H5: There is a significant influence between Transformational Leadership Style on
Employee Performance is mediated by the Job Satisfaction variable.

Still in research conducted by In Prabowo's research, Noermijati & Irawanto (2017) also
explained that Work Motivation has an influence on Employee Performance. Job
Satisfaction also has a significant impact on Employee Performance. So, Work Motivation
gives a positive effect on Employee Performance if the employee already has Job
Satisfaction. Based on the opinions discussed above, the following hypothesis is made:
H6: There is a significant influence between Work Motivation on Employee Performance
which is mediated by the Job Satisfaction variable.

In a study conducted by Chandra & Priyono (2015) explained that the Work Environment
which has a conducive and comfortable atmosphere makes all employees can
communicate well between themselves and can work together. Situations like this make
employees feel satisfied with what they do and have a good impact in terms of Employee
Performance. Based on the opinions discussed above, the following hypothesis is made:
H7: There is a significant influence between the Work Environment on Employee
Performance mediated by the Job Satisfaction variable.

RESEARCH METHODS

The method of this research is descriptive causality which was designed with hypothesis
testing. Data collection uses primary data by distributing questionnaires to PT. Gynura
Consulindo with calculations based on 5 Likert scales. The sample used in this study were
Business and Entrepreneurial Review M.Tafrizi, Prastiyo, dan Siti 171

114 respondents from a population of 160 people based on Slovin calculations. The data
analysis method used is Structural Equation Modeling (SEM) with the help of Lisrel
version 8.8 for student software.

RESULTS AND DISCUSSION

At the Lisrel output, the path is said to be significant if the value on the track is black and
is declared not significant if the value on the path is red. Explanation of the results of the
theoretical model structure test path path between these variables can be presented in
the following table.

Table 8: Hypothesis Testing Results

Estimation T-value
Hypothesis Coefficient (> 1,66) Result
(β)
Direct Influence
H1 Transformational Leadership Style 0.559 4.985 H1 Accepted
→ Job Satisfaction
H2 Work Motivation → Job Satisfaction 0.485 4.414 H2 Accepted

H3 Work Environment → Job 0.190 2.838 H3 Accepted

Satisfaction
H4 Job Satisfaction → Employee 0.490 4.591 H4 Accepted
Performance
Indirect influence

Transformational Leadership Style

H5 → Employee Performance through 0.274 3.569 H5 Accepted
Job Satisfaction
Work Motivation → Employee
H6 Performance through Job 0.237 3.339 H6 Accepted
Satisfaction
Work Environment → Employee
H7 Performance through Job 0.093 2.476 H7 Accepted
Satisfaction

Hypothesis 1
H1: There is a significant influence between Transformational Leadership Style on Job
Satisfaction.
172 Business and Entrepreneurial Review Vol.18, No.2, October 2018

Based on table 8 in the first hypothesis testing, it is known that a t-value of 4.985> 1.66 is
obtained with an estimated coefficient value of 0.559. Then H1 is accepted (supported),
meaning that there is an influence between the Transformational Leadership Style
variable on Job Satisfaction of PT. Gynura Consulindo with a contribution of 55.9%. This
influence is positive, which means the better the transformational leadership style found
in a company, the higher the level of job satisfaction felt by employees.
The results of this study support the results of Prabowo's research, Noermijati &
Irawanto (2017) concluded that the Transformational Leadership Style can affect Job
Satisfaction.

Hypothesis 2
H2: There is a significant influence between Work Motivation on Job Satisfaction.
Based on table 8 in the second hypothesis testing, it is known that the t-value of 4.414>
1.66 is obtained with an estimated coefficient value of 0.485. Then H2 is accepted
(supported), meaning that there is an influence between the Work Motivation variable
on Job Satisfaction of PT. Gynura Consulindo with a contribution of 48.5%. This influence
is positive, which means the better the work motivation of employees, the higher the level
of job satisfaction felt by employees.
The results of this study support the results of Prabowo's research, Noermijati &
Irawanto (2017) concluded that Work Motivation can affect Job Satisfaction positively
and significantly.

Hypothesis 3
H3: There is a significant influence between Work Environment on Job Satisfaction.
Based on table 8 in the third hypothesis testing, it is known that the value of t-value
2.838> 1.66 is obtained with an estimated coefficient value of 0.190. Then H3 is accepted
(supported), meaning that there is an influence between the Work Environment variable
on the Job Satisfaction of PT. Gynura Consulindo with a contribution of 19.0%. This
influence is positive, which means the better the work environment is in a job, the higher
the level of job satisfaction felt by employees.

Hypothesis 4
H4: There is a significant influence between Job Satisfaction on Employee Performance.
Business and Entrepreneurial Review M.Tafrizi, Prastiyo, dan Siti 173

Based on table 8 in the fourth hypothesis testing, it is known that the t-value of 4.591 is
obtained> 1.66 with an estimated coefficient value of 0.490. Then H4 is accepted
(supported), meaning that there is an influence between the Job Satisfaction variable on
Employee Performance at PT. Gynura Consulindo with a contribution of 49.0%. This
influence is positive, which means the higher the level of job satisfaction felt by
employees, the better the achievement of work results to be obtained by employees.

Hypothesis 5
H5: There is a significant influence between Transformational Leadership Style on
Employee Performance through the Job Satisfaction variable.
Based on table 8 in the fifth hypothesis testing, it is known that a t-value of 3,569> 1.66 is
obtained with an estimated coefficient of 0.274. Then H5 is accepted (supported),
meaning that there is an influence of the Transformational Leadership Style on Employee
Performance through Job Satisfaction on the employees of PT. Gynura Consulindo with a
contribution of 27.5%. This indirect effect is positive, which means the higher the level of
job satisfaction felt by employees, the transformational leadership style will be
increasingly able to improve the performance or work results to be achieved by
employees.

Hypothesis 6
H6: There is a significant influence between Work Motivation on Employee Performance
through Job Satisfaction variable.
Based on table 8 in the sixth hypothesis testing, it is known that the t-value is 3.339> 1.66
with an estimated coefficient value of 0.237. Then H6 is accepted (supported), meaning
that there is an influence of Work Motivation on Employee Performance through Job
Satisfaction on the employees of PT. Gynura Consulindo with a contribution of 23.7%.
This indirect effect is positive, which means the higher the level of job satisfaction felt by
employees, the work motivation of employees will increasingly be able to improve
performance or work results to be achieved by employees.

Hypothesis 7
H7: There is a significant influence between Work Environment on Employee Performance
through Job Satisfaction variable.
174 Business and Entrepreneurial Review Vol.18, No.2, October 2018

Based on table 8 in the last hypothesis testing, it is known that the t-value of 2.476> 1.66
is obtained with an estimated coefficient value of 0.09 3. Then H7 is accepted (supported),
meaning that there is an influence of the Work Environment on Employee Performance
through Job Satisfaction on PT. Gynura Consulindo with a contribution of 9.0%. This
indirect effect is positive, which means the higher the level of job satisfaction felt by
employees, accompanied by a comfortable work environment, the better the
performance or work results to be achieved by employees.

CONCLUSION

Based on the description of the results of hypothesis testing conducted with the
Structural Equation Model (SEM) research analysis method with LISREL software version
8.80, conclusions can be generated as follows:
There is a significant influence between Transformational Leadership Style on Job
Satisfaction with a contribution of 55.9%. This influence is positive, which means the
better the transformational leadership style found in a company, the higher the level of
job satisfaction felt by employees.
There is a significant influence between Work Motivation on Job satisfaction of
employees of PT. Gynura Consulindo with a contribution of 48.5%. This influence is
positive, which means the better the work motivation of employees, the higher the level
of job satisfaction felt by employees.
There is a significant influence between the Work Environment variable on Job
Satisfaction of PT. Gynura Consulindo with a contribution of 19.0%. This influence is
positive, which means the better the work environment is in a job, the higher the level of
job satisfaction felt by employees.
There is a significant influence between the Job Satisfaction variable on Employee
Performance at PT. Gynura Consulindo with a contribution of 49.0%. This influence is
positive, which means the higher the level of job satisfaction felt by employees, the better
the achievement of work results to be obtained by employees.
There is a significant influence between Transformational Leadership Style on Employee
Performance through Job Satisfaction on PT. Gynura Consulindo with a contribution of
27.5%. This indirect effect is positive, which means the higher the level of job satisfaction
Business and Entrepreneurial Review M.Tafrizi, Prastiyo, dan Siti 175

felt by employees, the transformational leadership style will be increasingly able to

improve the performance or work results to be achieved by employees.
There is a significant influence between Work Motivation on Employee Performance
through Job Satisfaction on PT. Gynura Consulindo with a contribution of 23.7%. This
indirect effect is positive, which means the higher the level of job satisfaction felt by
employees, the work motivation of employees will increasingly be able to improve
performance or work results to be achieved by employees.
There is a significant influence between the Work Environment variable on Employee
Performance through Job Satisfaction on PT. Gynura Consulindo with a contribution of
9.0%. This indirect effect is positive, which means the higher the level of job satisfaction
felt by employees, accompanied by a comfortable work environment, the better the
performance or work results to be achieved by employees.

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